As soon as the amount of debt due to Bank or F.I. becomes Rs. 10.00 lacs or exceeding to Rs. 10.00 lacs, the Civil Court is debarred from exercising the jurisdiction over such matter and it is only the concerned DRT to entertain the proceedings from that stage – M/s Jaiswal Bearing House through its proprietor Shyam Babu Vs. State Bank of India – DRAT Allahabad Bench
September 23, 2021
DRAT held that the present case is apparently not covered under section 31 or 31(A) of the RDDBFI Act, but admittedly, the total decretal amount came to be Rs. 16.00 lacs and odd as per the decree of the Civil Court, therefore, the jurisdiction of the Civil Court was debarred in view of sections 18 & 34 of the RDDBFI Act. Hence the application filed by the Bank for issuance of recovery certificate was to be entertained by the DRT. The provisions of bar of jurisdiction and overriding effect of the RDDBFI Act are to be read with the provisions of sections 31 and 31-A of the RDDBFI Act. As soon as the amount of debt due to Bank or F.I. becomes Rs. 10.00 lacs or exceeding to Rs. 10.00 lacs, the Civil Court is debarred from exercising the jurisdiction over such matter and it is only the concerned DRT to entertain the proceedings from that stage.